Christian

Do we have guidance from ATX on filling this form. The form produces the correct 1/3 amount for inclusion on the Form 1040 but then this 1/3 amount is ADDED to the distribution and is the taxable amount reported on the 1040 which is totally incorrect. There must be a toggle or two I have missed.

This is so far the third instance of this type of miscue by the Service in which they failed to pay $600 to someone and I added it to their refund so it must be fairly common.

After attempting this it provides no reduction in the tax due. Therefore no point in doing it.

The husband of a married couple I have helped for years passed on in October 2020. They had received the first stimulus payment of $2,400 earlier in the year. In 2021 the wife received only $600. Does anyone know of a reason she got only $600 instead of the $1,200 to which she was entitled. She provided the letter the Service sent and this looks to me to be a mistake on their part. I plan to add the $600 as a refund on her return.

As it happens this info is a Godsend to me as well. My grandfather was a rural delivery person in the 1920's. Among some items he left were 400 postcards from that time period in their original packaging and I need to determine their value.

I am lost in the labyrinth of the Form 8960 instructions. As I read it state income taxes attributable to investment income is deductible against that income to compute the Net Investment Income Tax. In attempting to enter the figure I am referred to an Orwellian table. Do I need to use a Schedule A to get this credit ? As a large chunk of the tax was paid in January it cannot be claimed on the 2020 Schedule A. I am considering simply overriding this field for the client as he certainly paid Virginia tax at the 5.75% rate on this income.

Looks as if my fellow practitioners have not seen this either. Since tax is due on the mother's final return the service will probably accept the signature and cash the check. Any odds on that ?

A client passed on last year. Her will was recorded at the local circuit court listing her son and daughter as her heirs but was not probated. The signature on the final return can be either of them. My question is since they are not appointed as administrator or executor but have the authority to act in concluding her affairs how does one of them sign the final return as son, daughter or heir? I've not seen this before as as most wills here are probated.

Yep that's what I was thinking but much has changed in tax law and it was worth a shot.

I am preparing a client's final return she having died in May 2020. She has a significant remaining capital loss in excess of the annual $3000 which is deductible in any year. Can this be added to Schedule D and taken off since this is her final return or is it simply lost? I have not encountered this in a number of years and although using the loss appears only fair we all know what is fair often does not apply in tax law. There will be no estate fiduciary return as there was no income post death her assets passing immediately to her two children by TOD ownership.

I am glad for the clarification. The surviving spouse herself died in May of last year and her son the executor thinks she got no payment first or second. She would have been entitled to $1800 total. I told him his mother's financial advisor will simply have to find out whether she got them or not. I have neither the time or inclination to wet nurse him this time around.

I am sure many here are worn out with these payments. The clients being unsure of whether they got them. "Yes I got them" and then the call after the return is filed " I just got a check for $600." Clearly they had not got all of what was due. My question today concerns a married couple one of whom dies in 2018 whose date of death appears on the 2019 filing. Does the surviving spouse receive an EIP1 of $2400 in 2020 and then an EIP2 of $600 in 2021. This has recently come up and to the best of my understanding this is correct but I am not any authority on this so best to compare notes. In this particular situation the 2019 tax filing would surely have arrived after the payments began being mailed.

Looks like adding the Form 815E to her return will resolve this problem. I simply have not had the time to review this particular form. Many thanks.

A client owing to the Covid pandemic had to withdraw funds from an IRA account before reaching 591/2 last year. The fiduciary assigned code 1 in box 7 of the form. I ask the client to discuss with the broker changing the code to 2 indicating the client qualified for an exception. They declined stating that her taxman could change it. I see no code number in the elaborated exceptions in the instructions only a notation under other which states "Distributions incorrectly indicated as early distributions by code 1, J, or S in box 7 of Form 1099-R. Include on line 2 the amount you received when you were 591/2 or older." This clearly will not qualify as an exception. Frankly I am stumped as to how I can assist my client in avoiding the 10% early withdrawal penalty. My reading of the fiduciary reporting obligations were that they were to accept a signed letter or statement from the client attesting to the need related to Covid 19 and issue the code 2 on the Form 1099-R indicating an exception applied. Does anyone have a solution to this one ?

I know it's a lot to hope for "quickly". It's too much of a strain for some functionary at Social Security to pick up a phone and make a call to Andover. I have already advised the client to call the local member of congress if the second efile fails.

I received a reject stating the SSN listed for the client shows the Social Security Administration listing his wife as deceased. i rechecked the filing and the number sent is correct. She called the local Social Security office and they merely said she was indicated as living. Before we get into an endless back and forth is there a number I could call and get this resolved quickly ? I am going to resubmit the efile but I expect another reject.

Never had a reason to look but is there a scheduling calendar in our ATX program ?

Losing your mother is about as bad as it gets. My deepest sympathy to you and family Rita.

A couple is sending their daughter through college. She is in her second year. The couple took out a student loan for some $5,000 plus to help cover tuition but the loan is in their daughter's name. In reading the credit rules it looks to me the couple can still take the credit using the amount of the loan. Is this correct ?

It's a simple trust and this is it's final year. I asked about it last year and learned the loss can be passed to the clients in the trust's final year.

The clients have no income but a loss from a stock sale to report on this form. Which line is used to pass it on. Line 11 or line 14 or 9 ?

I thought you women married hubbies so they could wonder in and talk.

Always a new wrinkle. After a conversation with the local court I find he did have the will recorded although not probated and he is recognized as administrator. You learn something new every year in this line of work.

I am preparing the final return of a longtime client whose son has held their power of attorney for a few years. He asked me who was to sign the final return and I stated he or his sister as executor or administrator of his mother's final affairs. He had formerly said he and his sister were the two named heirs so I assumed his mother had a will and he had it probated. But no he had not and further advised it was unnecessary for some obscure reason he could not provide. Soooooooooo without the court documentation I am left wondering just how his late mother's final return is to be signed.

Thanks for the info. The credit was repealed so he will not get that and if he receives reimbursement he has no deduction.